Top Headlines 

FX Global Code Formally Launched – Profit & Loss

The Bank for International Settlements’ (BIS) FX Working Group formally launched the full version of the FX Global Code of Conduct today in London, following the release of stage one in New York last year.

FXPA Endorses Global Code for FX Market – FXPA

The Foreign Exchange Professionals Association (FXPA) welcomes the release of the Global Code for the wholesale foreign exchange market, which was published this morning in London.

New Global FX Committee Formed – Profit & Loss

In addition to the Code, central bank governors under the auspices of the Bank for International Settlements have formally announced the formation of a Global FX Committee (GFXC), with the Bank of England’s head of markets, Chris Salmon, at the helm.

The Blueprint for Adoption – Profit & Loss

Along with today’s launch of the full Code, the FX Working Group (FXWG) has also published its Blueprint for Achieving Adoption, in which it lays out four key tenets.

A Last Look at Last Look? – Profit & Loss

There is one area of the Global Code of Conduct that continues to attract controversy, and, Colin Lambert says, we all know what it is…

P&L Talk Series: Guy Debelle – Profit & Loss (subscription)

Guy Debelle, deputy governor of the Reserve Bank of Australia and chair of the FX Working Group responsible for producing the Global Code, discusses his hopes and ambitions for the much-awaited document with Colin Lambert.

A Landmark Day in the FX Industry… Potentially – Profit & Loss (subscription)

The Code is very much a first line of defence in my view and may save the industry a lot of further angst.

BNP Paribas to Pay $350m Over Forex Manipulation – Financial Times (subscription)

‘We got a little cartel really brewing,’ a trader wrote, according to DFS transcript.

Cautious Fed, Weaker Dollar Lift Emerging Stocks, FX – Reuters

A dovish Fed and a dollar retreat boosted emerging markets, with stocks approaching two-year highs and the yuan scaling a two-month peak a day after a credit ratings downgrade.

This Could Be the Euro’s Best Year in a Decade – Bloomberg

It was supposed to be a year of risk that could lead to a break up of the euro. It’s turning out to be the best year in a decade for the shared currency.

China State Banks Sell Dollars, Push the Yuan to Two-Month High: Traders – Reuters

Chinese state-owned banks sold dollars in the onshore foreign exchange market five traders said, pushing the yuan to its strongest level in nearly two months.

For Oil Bulls, the Loonie is a Good Bet: Goldman – Financial Times (subscription)

Traders looking to tap into rising oil prices would be wise to bet on the Canadian dollar, which is under-appreciated compared with its commodity-currency counterparts, Goldman Sachs said.

Regulatory News

EU Wants Secret Ballot on Post-Brexit Location of European Agencies – Wall Street Journal (subscription)

European Union countries fighting to host the bloc’s top financial regulator and drugs watchdog will vote in a secret ballot as the continent’s capitals compete over Brexit spoils.

EU’s Market Rules Revamp May Be Slower Than Traders Fear – Bloomberg

The “big bang” the financial industry feared when the European Union’s overhaul of financial-trading rules takes effect in January may turn out to be more of a soft launch.

Delay Revised Basel Capital Rules, Say Bankers – Risk (subscription)

Regulatory heads at JP Morgan and BNP Paribas recommend regulatory recess.

Spectre of Mass Swap Unwinds Looms Ahead of VM Deadline – Risk (subscription)

Dealers warn of market disruption if trades lacking new CSAs are terminated before September 1.

Challenge to SEC’s In-House Courts Could Overturn Years of Orders – Financial Times (subscription)

Ray Lucia says the way the commission hires judges is unconstitutional.

Company News

Citi Narrowly Tops Annual FX Traders Ranking – Reuters

US bank Citi held on to top spot in the foreign exchange industry’s main annual ranking of traders by volume despite losing around two percent in market share, results showed.

Deutsche Bank, Barclays Euribor Traders’ Trial Delayed to 2018 – Bloomberg

The trial of six former Barclays and Deutsche Bank traders charged with manipulating a key interest-rate benchmark will be postponed to January from September, a London judge ruled.

FIA PTG Comments on How Swap Dealer Capital Rules Will Affect Liquidity – FIA PTG

FIA PTG argues that the proposed rules would present a significant and unnecessary barrier to entry that would likely render it too costly for many existing and aspiring swap dealers to continue providing this service.

Cryptocurrency Mania Goes Beyond Bitcoin – Bloomberg

The market capitalization of digital currencies has soared over 50 percent to more than $90 billion in the past seven days as the frenzy around cryptocurrencies reaches a fever pitch.

Market Savvy

Mexican Peso Hits Strongest Level Against Dollar Since Wake of Election – Financial Times (subscriptionThe Mexican peso rallied to its strongest level against the buck since the US election, in the latest sign that investor sentiment on the country is brightening.

Asian Currencies Rise on Fed Minutes; Yuan Shoots to Two-Month High – Reuters

Asian currencies were firm after the minutes of the US Federal Reserve’s last meeting showed policymakers favouring a gradual approach to interest rate hikes, with the yuan hitting two-month highs on state-driven dollar selling after Moody’s downgraded China’s debt ratings.

Rand Continues to Strengthen on Prospect of Zuma Removal – Financial Times (subscription)

The South African rand has strengthened past 13 per dollar for only the second time since Jacob Zuma sacked his finance minister in March, after reports suggested the president himself could be on the way out amid growing pressure from within the ruling African National Congress.